Suppose There Is a Bank Panic

question 154

Multiple Choice

Suppose there is a bank panic.Which of the following would not be a consequence of this bank panic?

• A)Bank total reserves would decrease.
• B)Reserves would increase.
• C)Bank chequing account balances would decrease.
• D)Individual banks would have to shrink the value of loans they made.
• E)The economy would likely enter into a recession.

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Definitions:

Negligence Action

A lawsuit alleging that a party's failure to act with reasonable care resulted in damage or injury to another.

Charge Of Negligence

An accusation made against an individual or entity for failing to act with the care that a reasonably prudent person would have in the same circumstances.

Lawfully

In a manner that is in accordance with the law, legally permitted or authorized.

Duty To Act

A legal obligation that requires a person to take a certain action or perform a certain duty, often in emergency situations to avoid liability for harm caused by nonaction.